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#711-675 WEST HASTINGS STREET VANCOUVER, B.C. CANADA V6B 1N2 TELEPHONE: 604-685-2222 FAX: 604-685-3764 WWW.KLONDIKESILVER.COM

FOR IMMEDIATE RELEASE: May 23, 2012 TSXV: KS

PRIVATE PLACEMENT OPENS

Klondike Silver Corp. (TSX.V: KS) announces that it has arranged a Private Placement for up to 4,000,000 flow-through and non flow-through units priced at $0.20 and$0.15 per unit respectively. Each unit will consist of either one flow through or one non-flow through common share and one non-flow through, non-transferable share purchase warrant entitling the holder to purchase one additional common share for a period of four years at a price of $0.25 per share in the case of flow through units and $0.20 in the case of non-flow through units.

In accordance with Exchange policies, finders' fees may be paid on a portion of the funds raised. The private placement is subject to regulatory approval.

The proceeds of the private placement will be used for exploration programs, property option payments and general working capital.

About Klondike Silver

Klondike Silver Corp. has assembled a quality portfolio of silver properties in historic mineral districts in Canada, and is applying advanced exploration technologies to add value to these core assets.

CONTACT INFORMATION

Corporate Inquiries: Alan Campbell, (604) 685-2222 Email: [email protected]

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.